Tom Krisher and Matt O’brien, Associated Press – October 26, 2022 / 1:24 PM | History: 392791
Photo: The Canadian Press
FILE – Elon Musk speaks at the SATELLITE Conference and Exhibit on March 9, 2020, in Washington. Musk posted a video on Wednesday, Oct. 26, 2022, showing him walking to Twitter headquarters ahead of a Friday, Oct. 28 deadline to close his $44 billion deal to buy the company. (AP Photo/Susan Walsh, File)
Elon Musk posted a video on Wednesday showing him walking to Twitter headquarters ahead of a Friday deadline to close his $44 billion deal to buy the company.
Musk also changed his Twitter profile to refer to himself as “Chief Twit” and his location as Twitter headquarters, which is based in San Francisco. The video showed him carrying a sink through the lobby area.
“Break into Twitter headquarters, sink it!” she tweeted her.
Entering Twitter Headquarters: Let him in! pic.twitter.com/D68z4K2wq7
— Elon Musk (@elonmusk) October 26, 2022
A court gave Musk until Friday to close his April deal to acquire the company after he earlier tried to back out of the deal. Neither Musk nor Twitter have said whether the deal is done.
Despite Musk’s eye-catching entrance into headquarters, it was not yet clear whether the Twitter purchase had been finalized. Twitter confirmed that Musk’s video tweet was real, but did not comment further. Alex Spiro, Musk’s lead attorney, did not immediately respond to a request for comment.
The Washington Post reported last week that Musk told potential investors that he plans to lay off three-quarters of Twitter’s 7,500 workers when he owns the company. The newspaper cited documents and anonymous sources familiar with the deliberation.
One of Musk’s biggest hurdles in closing the deal was keeping the funding promised about six months ago.
A group of banks, including Morgan Stanley and Bank of America, earlier this year signed a $12.5 billion loan of the money Musk needed to buy Twitter and take it private. Strong contracts with Musk forced banks into financing, though changes in the economy and debt markets since April have likely made the terms less attractive. Musk even said that his investment group would buy Twitter for more than it is worth.
Less clear is what is happening to the billions of dollars promised to Musk by investors who would get ownership stakes in Twitter. Musk’s original list of equity partners included a variety of partners ranging from the billionaire’s friends from the tech world with like-minded views on Twitter’s future, such as Oracle co-founder Larry Ellison, to funds controlled by Middle East royalty. East.
The more equity investors involved in the deal, the less Musk will have to pay on his own. Most of his wealth is invested in shares of Tesla, the electric car company he runs. Since April, he has sold more than $15 billion worth of Tesla stock, presumably to pay for his share. More sales could come.
Musk’s flirtation with buying Twitter appeared to start in late March. That’s when Twitter said it contacted members of its board, including co-founder Jack Dorsey, and told them it was buying shares and was interested in joining the board, taking Twitter private or starting a competitor.
Then, on April 4, he revealed in a statutory filing that he had become the company’s largest shareholder after acquiring a 9% stake worth about $3 billion.
At first, Twitter offered Musk a seat on its board. But six days later, CEO Parag Agrawal tweeted that Musk might not be joining the board after all. His offer to buy the company quickly followed.
When Musk agreed to buy Twitter, he inserted a “420” marijuana reference into his price of $54.20 per share. He sold roughly $15 billion worth of Tesla stock to help finance the purchase, then gathered commitments worth billions more from a diverse group of investors, including Silicon Valley bigwigs like Oracle co-founder Larry Ellison.
Inside Twitter, Musk’s offer was met with confusion and low morale, especially after Musk publicly criticized one of Twitter’s top lawyers involved in content moderation decisions.
In July, Musk abruptly changed course and announced that he was abandoning his bid to buy Twitter. His stated reason for it: Twitter had been unclear about his problem with fake accounts that he called “spam bots.” Twitter sued Musk in Delaware Chancery Court to force the deal. Two weeks before a 5-day trial was to begin, Musk changed his mind again, saying that he wanted to complete the deal after all.
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